City budget raises taxes, cuts funding for departments

By Molly McGowanTimes-News staff writer

Published: Tuesday, June 3, 2014 at 9:09 p.m.

Last Modified: Tuesday, June 3, 2014 at 9:09 p.m.

The city of Hendersonville's nearly $32 million budget for fiscal year 2014-15 allocates an extra $150,000 for street resurfacing projects, but holds back elsewhere – including a 5-percent cut to all city department budgets and a temporary hiring freeze.

The $31,999,895 budget unanimously approved Tuesday also includes a 3-cent property tax increase recommended in May. The increase will provide an additional $450,000 in revenue.

City Manager John Connet told Mayor Barbara Volk and councilmen Tuesday that the budget, approved that evening, reflected requests and discussions held during the budget workshop.

Since revamping the city's street resurfacing program was a top priority in discussion, the extra $150,000 was included for such projects, Connet said.

On the flip side, the budgets for other planned projects will be reduced or the projects will be delayed. The Sullivan Park improvement project's budget was reduced by $25,000, the resurfacing of Whitmire Activity Building's parking lot will be delayed a year, and improvements to Berkeley Park will be delayed until fiscal year 2015-16.

Major capital projects planned for 2014-15 include the Grey Hosiery Mill, improvements to the Etowah water system and the joint venture with Wingate University, Henderson County, Blue Ridge Community College and Pardee Hospital to establish the new health education facility in town.

Next fiscal year's budget is $842,013 - or 3 percent - higher than the current budget, with utility expense line items matching a proposed 5 percent rate increase by Duke Energy.

The city's reserves will drop to a recommended $4.9 million, or 37 percent of the city's general fund.

Connet said the city's ad valorem taxes are down, what with the loss of the city's flexibility in charging privilege taxes, and Hendersonville's revenue for several years has been “relatively flat.” Perhaps with the increased property taxes, Connet said, the city's revenues will grow.

The 5 percent cut for all city departments came on the heels of those challenges, in addition to financing debt incurred from Main Street and fire projects, the extra money for street repairs, an increased reliance on reserves and the uncertainty created by the General Assembly decision regarding business licenses

The budget also includes a temporary hiring freeze.

“When we have someone leaving our organization, we want to freeze that position for two months,” said Connet.

<p>The city of Hendersonville's nearly $32 million budget for fiscal year 2014-15 allocates an extra $150,000 for street resurfacing projects, but holds back elsewhere – including a 5-percent cut to all city department budgets and a temporary hiring freeze.</p><p>The $31,999,895 budget unanimously approved Tuesday also includes a 3-cent property tax increase recommended in May. The increase will provide an additional $450,000 in revenue.</p><p>City Manager John Connet told Mayor Barbara Volk and councilmen Tuesday that the budget, approved that evening, reflected requests and discussions held during the budget workshop.</p><p>Since revamping the city's street resurfacing program was a top priority in discussion, the extra $150,000 was included for such projects, Connet said.</p><p>On the flip side, the budgets for other planned projects will be reduced or the projects will be delayed. The Sullivan Park improvement project's budget was reduced by $25,000, the resurfacing of Whitmire Activity Building's parking lot will be delayed a year, and improvements to Berkeley Park will be delayed until fiscal year 2015-16.</p><p>Major capital projects planned for 2014-15 include the Grey Hosiery Mill, improvements to the Etowah water system and the joint venture with Wingate University, Henderson County, Blue Ridge Community College and Pardee Hospital to establish the new health education facility in town.</p><p>Next fiscal year's budget is $842,013 - or 3 percent - higher than the current budget, with utility expense line items matching a proposed 5 percent rate increase by Duke Energy.</p><p>The city's reserves will drop to a recommended $4.9 million, or 37 percent of the city's general fund.</p><p>Connet said the city's ad valorem taxes are down, what with the loss of the city's flexibility in charging privilege taxes, and Hendersonville's revenue for several years has been “relatively flat.” Perhaps with the increased property taxes, Connet said, the city's revenues will grow.</p><p>The 5 percent cut for all city departments came on the heels of those challenges, in addition to financing debt incurred from Main Street and fire projects, the extra money for street repairs, an increased reliance on reserves and the uncertainty created by the General Assembly decision regarding business licenses</p><p>The budget also includes a temporary hiring freeze.</p><p>“When we have someone leaving our organization, we want to freeze that position for two months,” said Connet.</p>